News 11.09.2008
Great Circle Invests US$15 Million in Seismic Provider, Caspian Services Inc.
Business Wire
STAMFORD, Conn. - (BUSINESS WIRE) - The Great Circle Fund, a U.S. based private equity firm, has invested US$15 million in Caspian Services, Inc. (OTC Bulletin Board: “CSSV.OB”). Proceeds from the convertible loan offering are earmarked for the development of its marine supply base located at Bautino Bay on the Caspian Sea and for general corporate purposes promoting other growth initiatives, including expansion of the Company’s onshore and offshore seismic capabilities. As part of the investment, Great Circle will be offered a seat on the Company’s Board of Directors.
“The Kazakhstan off shore oil sector holds one of the largest undeveloped proven oil reserves in the world. Caspian Services specializes in areas crucial to E&P activity in the region,” said Paul Rapello, Partner of Great Circle Capital. “The Company is already the dominant local seismic and support provider to the oil and gas industry and our investment strengthens the Company’s ability to meet the growing demand for its services.”
The Great Circle investment brings the total capital raised by Caspian Services in the last year to over $35 million, demonstrating the strong institutional investor interest in the Company. In fiscal 2007, Caspian Services reported record revenues and EBITDA of $64.9 million and $21.0 million, respectively.
"We are pleased to conclude Great Circle's investment. The potential in the Caspian region is vast, and funding expansion to keep up with demand remains one of our biggest challenges," said Laird Garrard, CEO of Caspian Services. "Great Circle's cash infusion and their participation on our Board will help us implement our growth plans more aggressively."
Caspian Services
Caspian Services is the largest provider of seismic and geophysical data acquisition services in the Caspian Region. The Company operates a fleet of shallow draft offshore support vessels, including supply vessels, multi-purpose vessels and accommodation units. The majority of Caspian Services’ fleet is integrated into its existing seismic activities. The Company is currently constructing a new supply base to serve the Kazakhstan offshore oil fields in Bautino Bay. The services to be provided will include fuel bunkering, loading/offloading capabilities, warehousing and storage. The supply base will include a vessel maintenance and repair facility with dry docking capabilities. This facility will house all of Caspian Services’ offshore seismic and vessel operations as well as serve third party customers. The Company maintains corporate offices in Almaty, Kazakhstan, and Salt Lake City, Utah. The Company’s operating hubs are located in Almaty and Aktau, Kazakhstan. More information on Caspian Services can be found at www.caspianservices.kz.
Great Circle Fund
The Great Circle Fund LP is a $190 million emerging markets private equity fund focused on investing in the transportation and infrastructure sector. The Fund’s primary geographic focus is the countries of the former Soviet Union, Southeast Europe and Turkey. Great Circle is managed by Great Circle Capital LLC, based in Stamford, Connecticut, USA. Moscow-based Alfa Capital Partners is the Regional Manager of the Fund. Probel Capital Management, based in Brussels, is an Investment Advisor to the Investment Manager of the Fund. www.greatcirclecapital.com
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